. This is effectively how much the nation is buying and producing, so reduced consumer spending is taken into account. It is also linked to increased unemployment figures, stock markets declining or crashing and stagnant wages. While recessions can last weeks, months or years, the effects of one are often felt for far longer and, unfortunately, there is no limit to how long one can go on for. Fuel poverty scenes projected onto Rishi Sunak's £1,500,000 mansion If a recession carries on for a longer period of time, it turns into a depression. This length of time is typically around three years or more, or when the GDP decline hits 10% or more. When was the UK last in a recession? The last UK recession was not long ago, with it falling during the height of the coronavirus pandemic in August 2020. Following a lengthy lockdown with shops and hospitality venues being closed, as well as hundreds of companies going out of business, the UK economy suffered significantly. In fact, the country's GDP fell by a staggering 20.4%, with many across the nation losing their jobs or being furloughed fo){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
During his Autumn Statement on Thursday, Chancellor Jeremy Hunt announced that the UK is now in recession, with the economy predicted to shrink further next year.
Mr Hunt blamed the war in Ukraine for the recession and said that many other countries are facing the same hardship.
He added that unemployment is expected to rise by 1.3% to nearly 5% but promised to ‘tackle the cost of living crisis’ and ‘rebuild our economy’ as he set out plans for tax rises and spending cuts in the Commons.
Following this worrying news, here’s exactly what a recession entails, and when the UK last experienced one.